What to Watch in the Day Ahead - Wednesday, April 15

(The Day Ahead is an email and PDF publication that includes the day's major stories and
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Bank of America Corp reports first-quarter results. Analysts are expecting the second-biggest
U.S. bank to report a clean quarter, with no material surprises in terms of litigation or
repositioning charges. Since 2010, the bank has agreed to pay at least $70 billion to resolve
disputes linked to home loans, mortgage bonds and other problems stemming from before and during
the 2008 crisis. Investors will be looking for any updates on the company's fee income growth
and its ability to offset the coming inflection in loan loss provisioning.
Video streaming pioneer Netflix Inc is expected to report first-quarter profit above Wall
Street's average estimate, according to Thomson Reuters StarMine data. The company has been
benefiting from an expansion into international markets such as Europe, as growth in the United
States slows. Netflix is also expected to report strong subscriber addition numbers, according
to some analysts, helped by the recent release of the third season of its Emmy-winning original
series 'House of Cards'.
Data storage products maker SanDisk Corp is expected to report a first-quarter profit below
estimates, according to Thomson Reuters StarMine data. The company's stock lost about 40 percent
since touching a record high in July, making it a potential takeover target, analysts have said.
SanDisk has reported a string of issues, including unplanned maintenance at its chip foundry,
weak sales of enterprise products and lean inventory levels of NAND memory chips, leading it to
cut its first-quarter revenue guidance. Analysts will be looking for guidance, potential
strategic alternatives.
Federal Reserve data is expected to show a slowdown in industrial production and manufacturing
output holding steady in March after three straight months of declines, as firms contend with
the effects of the drawn-out winter weather conditions, a strengthening dollar and falling crude
oil prices. Industrial production is forecast to have decreased 0.3 percent, while manufacturing
output is expected to have advanced by 0.1 percent from the prior month. (0915/1315) Separately,
the Federal Reserve issues its so-called Beige Book, a compendium of anecdotes on the health of
the economy drawn from the central bank's sources across the nation. Investors will look to see
if the central bank's business contacts are reporting a pickup in activity after a winter lull
and whether their confidence in the strength of the economy going forward remains unsheltered.
Also the data from Empire State Survey, which gauges manufacturing activity in New York area, is
expected to show a rise in April. (0830/1230)
Delta Air Lines Inc, one of the most profitable U.S. carriers, reports first-quarter earnings.
Delta has said its unit revenue dropped in the first quarter as a stronger U.S. dollar hurt
international demand and domestic bookings fell short of its expectations. The Atlanta-based
carrier is expected to provide guidance for the second quarter that could suggest whether more
foreign exchange headwinds are to come.
Federal Reserve Bank of St. Louis President James Bullard speaks on the U.S. economy and
monetary policy before the Levy Economics Institute of Bard College 24th Annual Hyman P. Minsky
Conference on the State of the U.S. and World Economies. (0900/1300) Other speakers include
Federal Deposit Insurance Corp Vice Chair Thomas Hoenig, PIMCO former chief economist Paul
McCulley and U.S. Senator Elizabeth Warren. Separately, Federal Reserve Vice Chair Stanley
Fischer moderates "Session 2: Macro-Prudential Tools: Gathering Evidence" panel before a seminar
during the IMF/World Bank meetings. (1040/1440) Also, Federal Reserve Bank of Richmond President
Jeffrey Lacker speaks on "Investing in People for Long-Term Prosperity" before a group of
business and community leaders. (1930/2330)
An independent committee to the U.S. Food and Drug Administration is expected to make a
recommendation on The Medicines Co's once-rejected intravenous blood clot preventer, Cangrelor.
The drug, which won European marketing approval in March, will be reviewed by the FDA for the
second time, after the company was asked to reanalyze its trial data. The panel takes into
account the staff review released on Monday, which supported the drug's approval this time
round. The FDA is not obligated to follow the panel's recommendations, but typically does so.
The Bank of Canada is expected to hold interest rates steady at 0.75 percent after making waves
with a shock rate cut in January. The focus will be on the update to its Monetary Policy report,
with the bank expected to lower its forecast for first-quarter economic growth from the 1.5
percent it had predicted in January. Governor Stephen Poloz has since said the first three
months of the year will look "atrocious" due to the shock of the lower price of oil, a major
export for Canada. (1000/1400) Poloz holds a news conference following the release of the
central bank's monetary policy report. (1115/1515)
Statistics Canada releases February manufacturing sales data. Analysts forecast factory sales to
have increased 0.4 percent, after tumbling more than expected in January. (0830/1230)
LIVE CHAT - TAKING STOCK: What is fueling the rally in global equities and how long can it last
with Cathay Conning's Mark Konyn
Mark Konyn, CEO at Cathay Conning Asset Management, will join from Hong Kong to talk about the
recent rally in global equities; increasing foreign interest in Hong Kong and Japan; what to
expect from the Fed and how that will impact fund flows and this rally. (0000/0400) To join the
Global Markets Forum, click here bit.ly/1kTxdKD
Peru's statistics agency reports growth data for February. The economy expanded 1.7 percent
year-on-year in January on stronger mining activity, up from the 1 percent expansion in the
fourth quarter but still below expectations.
European Central Bank rate and monetary policy decisions are due for release. ECB President
Mario Draghi will hold a press conference after the scheduled Governing Council meeting. The ECB
was "about right" in claiming its trillion-euro quantitative easing program was having a
positive impact before it had even begun, according to three-quarters of economists polled by
Reuters.
(Compiled by Sourav Bose in Bengaluru; Editing by Savio D'Souza)